What was the reported amount of Zoomin Groomin's retained earnings as of December 31, 2023?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenues | |||
| Franchise Fees | $ 496,101 | $ 260,076 | $ 24,545 |
| Marketing & Technology Revenue | 383,043 | 103,849 | 10,059 |
| Area Rep Sales Revenue | 485,389 | 484,754 | 55,248 |
| Royalty Revenue | 1,420,950 | 376,630 | 92,640 |
| Other Income | 40,000 | 113,749 | - |
| Interest Income | 73,831 | 57,843 | 23,128 |
| Total Revenues | 2,899,314 | 1,396,901 | 205,620 |
| Expenses | |||
| Advertising and Marketing | 919,283 | 280,833 | 96,532 |
| Amortization Expense | 6,000 | 6,000 | 6,000 |
| Area Rep Expense | 1,658,376 | 568,628 | 74,059 |
| Commissions and Consulting | 167,473 | 198,260 | 9,750 |
| Contract Labor | 48,517 | 4,025 | 3,750 |
| Filing Fees | 8,569 | 7,905 | 5,951 |
| Insurance Expense | 7,492 | 5,368 | 4,203 |
| Lease Expense | 27,258 | - | - |
| Legal and Professional | 68,861 | 12,145 | 10,294 |
| Licenses & Fees | 175 | 601 | 535 |
| Meal Expense | 11,695 | 10,425 | 5,372 |
| Meeting Expense | 832 | 2,027 | 10,737 |
| Office Expense | 18,731 | 6,775 | 10,885 |
| Overhead - Corporate | 634,593 | 394,933 | 118,779 |
| Overhead - Marketing & Sales | 662,427 | 743,021 | 205,038 |
| Payroll Taxes | 22,435 | 12,267 | 5,191 |
| Postage and Shipping | 3,622 | 1,810 | 1,463 |
| Salaries and Wages | 296,420 | 163,480 | 71,349 |
| Technology Expense | 30,152 | 32,411 | 33,437 |
| Training Expense | 79,407 | 31,004 | - |
| Travel Expense | 38,807 | 25,712 | 12,748 |
| Van Sales Expense | 13,470 | 6,997 | 1,917 |
| Total Expenses | 4,724,595 | 2,514,627 | 687,990 |
| Net (Loss) | $ (1,825,281) | $ (1,117,726) | $ (482,370) |
Statements of Changes in Members' Equity For The Three Years Ended December 31, 2024
| Equity at Janu
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the equity at December 31, 2023, was reported as a deficit of $1,810,982. This figure reflects the cumulative net losses and earnings retained within the company since its inception. It is a key indicator of the company's overall financial health and its ability to fund future growth and operations.
A prospective franchisee should view this number with caution. A negative equity balance suggests that the company's liabilities exceed its assets, which could indicate financial instability. While not uncommon for newer franchise systems that are investing heavily in growth, it is important to understand the reasons behind the deficit and the franchisor's plan to improve its financial position.
Franchisees should inquire about Zoomin Groomin's strategies for increasing profitability and reducing its liabilities. Understanding the franchisor's long-term financial projections and how they plan to achieve positive equity is crucial. Additionally, potential franchisees may want to consult with a financial advisor to assess the risks and potential rewards of investing in a franchise with a negative equity balance.